Individuals are taught to trust their instincts from a very young age. Unfortunately, this is partly why so many new forex traders end up failing in the forex market. Forex live trading is such a precise profession that any individual who takes decisions on the basis of his or her emotions ends up losing all the money that he or she invests.
Therefore, when an individual who has relied on his instincts throughout his life enters the forex market, he feels incapable of being objective. If you have also felt this same confusion in forex live trading then you need to learn how to cope with destructive emotions like fear and anger. Here are some suggestions.
Sometimes, in forex live trading, you will suffer a series of losses. If these losses are big enough then they can make you panic with regards the rest of your account equity. The result is that you become scared of taking risks and start playing it safe.
In order to prevent yourself from not trading out of fear or even trading too much to cope with the loss, you need to step away from the market for a while. Some time away would allow you to regain your composure and objectivity.
The forex market will always have risk. In simple terms, you have to speculate to accumulate. This means that you cannot hope to profit in the market unless you take risks. However, what you can do is scale down your forex live trading efforts.
This means that you should lower your targets in the market. Furthermore, this also means that you invest less than what you intended earlier. In practical terms, this means lowering how much money you put up and also reducing the number of trades you open.
Use Positive Reinforcement
Visual support cannot be underestimated in forex live trading. For instance, if you find yourself being too scared then you can put up a note or a post it which would tell you to have faith in yourself.
Another note should advise you to learn to accept losses. When you follow these suggestions, you can reward yourself with something you enjoy. This is known as positive reinforcement.
Discipline in forex live trading means having confidence in your abilities which translates into sticking to your forex trading strategy. Forex trading strategies are designed to minimise the dangers inherent in the market. Furthermore, they will also help you control your own emotional impulses.
It is always good to take advice from people who have more experience than you in forex live trading. If the individual is experienced enough then it is likely that he has already gone through what you are going through in foreign exchange trading right now.
It is easy to find such individuals on the internet. This is especially true since the concept of social forex live trading came into play. Your options for finding such individuals include forex trading blogs, forex forums and forex social networks.